6mo results
AIT Advanced Information Technologies AIV
Shares issued 6,015,500 May 6 close $1.51
Thu 7 May 98 News Release
Mr. Peter Bennett reports
Revenues for the second quarter ended March 31, 1998 were $5,333,000, up 32
per cent from $4,028,000 for the same period last year. The company
generated earnings from operations of $55,000 compared to a loss of
$949,000 for the same period last year. During the second quarter of fiscal
1998 the company recorded an unusual item of $1,000,000 for severance costs
related to a restructuring and a provision for subsequent reduction of
certain real estate occupied by the company. As a result, the company
experienced a net loss of $1,064,000 or 10 cents per share after unusual
items and interest expense. This compares to a net loss of $1,022,000 for
the same period last year.
AIT achieved operating profit for the quarter as a result of increases in
revenues from its Identification Products division and the partial effect
of cost cutting measures instituted in February 1998. IDP revenues
increased 60 per cent quarter over quarter. Sales of new multi-function
document readers to British Airways and secure document readers to the U.S.
Government contributed to this increase. The British Airways sale validates
AIT's position in the new airlines marketplace. The U.S. Government sale
solidifies AIT's position as world leader in the border control
marketplace.
Revenues for the first six months of fiscal 1998 was $9,110,000 compared to
$9,202,000 for the same period last year. Net loss for the first six months
of fiscal 1998 is $2,729,000 or 25 cents per share. This compares to a net
loss of $1,498,000 or 23 cents per share for the same period last year.
Selling, general and administrative expenses are down 1 per cent for the
second quarter of fiscal 1998 as compared to the same period last year, and
are up 22 per cent year to date. Research and development expenses are up 8
per cent for the second quarter of fiscal 1998 as compared to the same
period last year, and up 23 per cent year to date due to increased
expenditures on new product development for both identification products
and interactive security products. The restructuring undertaken by the
company in February 1998 had a limited impact on expenses for the quarter,
but will result in approximately a 20 per cent to 25 per cent reduction in
expenses as compared to those of the first six months of fiscal 1998.
AIT's vision of supplying innovative technology for a safer world consists
of two business areas: identification products in which the company is the
world's leading supplier of software based systems for the issuance and
inspection of machine readable travel documents; and interactive security
products where the company supplies digital recording and video
telesurveillance products for personal and asset security.
STATEMENT OF EARNINGS
Three months ended March 31
(thousands of dollars)
1998 1997
Revenues $ 5,333 $ 4,028
Direct costs 2,163 1,923
------- -------
Gross margin 3,170 2,105
------- -------
Expenses
Selling, general
and administrative 2,045 2,062
Research and
development 1,070 992
------- -------
3,115 3,054
------- -------
Earnings from
operations 55 (949)
Unusual item 1,000 -
Net interest
expense 119 73
------- -------
Earnings (loss)
before income
taxes (1,064) (1,022)
Income tax
expense - -
------- -------
Net earnings
(loss) $(1,064) $(1,022)
======= =======
Net earnings
(loss) per
share (10 cents)(16 cents)
STATEMENT OF EARNINGS
Six months ended March 31
(thousands of dollars)
Revenues $ 9,110 $ 9,202
Direct costs 3,795 4,910
------- -------
Gross margin 5,315 4,292
------- -------
Expenses
Selling, general
and administrative 4,606 3,790
Research and
development 2,288 1,865
------- -------
6,894 5,655
------- -------
Earnings from
operations (1,579) (1,363)
Unusual item 1,000 -
Net interest
expense 150 135
------- -------
Earnings (loss)
before income
taxes (2,729) (1,498)
Income tax
expense - -
------- -------
Net earning
(loss) $(2,729) $(1,498)
======= =======
Net earnings
(loss) per
share (25 cents)(23 cents)
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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